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Industry Associations Seek Clarifications from Government Regarding Participation in Rehidro and PHBC
The inclusion of fertilizer projects in low-emission hydrogen production incentive programs has generated noise among industry associations and the Ministry of Finance. The deadlock revolves around the possibility of excluding these projects from public industrial decarbonization policies.
Associations Question Exclusion of the Fertilizer Sector
Representative associations of the fertilizer, green hydrogen, and wind energy sectors sent a letter to the Ministry of Finance in early April, demanding clarifications on the criteria of the Rehidro and PHBC programs. According to a report by Eixos, the entities fear that fertilizer projects produced with green hydrogen may not be included in the fiscal subsidies and tax exemptions outlined in the new public policies.
Government Denies Exclusion and Reinforces Commitment to Hydrogen with the Fertilizer Sector
In response to criticism, the Ministry of Finance denied that producers of green fertilizers will be excluded from benefits. In a statement to Eixos agency, the ministry emphasized that national production of fertilizers from low-emission hydrogen is considered strategic for Brazil, given the high level of importation of these inputs and their relevance to agribusiness. The Ministry also recalled that subsidies will prioritize projects aligned with the industry’s decarbonization goals.
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Competitive and Strategic Potential of Green Hydrogen
The production of hydrogen with a low carbon footprint has been pointed out as a viable alternative to replace natural gas in ammonia manufacturing, the main component of fertilizers. Today, Brazil heavily relies on importing this input from countries like Russia and Gulf producers. With the strengthening of the local industry, the country can advance in energy sovereignty, in addition to adding value to agribusiness with more sustainable products.
Expected Impacts on the Energy Transition Policy
Experts assess that the clear inclusion of green fertilizers in hydrogen incentive policies would help accelerate the energy transition in the agricultural sector. The measure may also attract new investments, drive technological innovation, and establish Brazil as a reference in clean energy applied to food production. The expectation is that the final guidelines of the National Hydrogen Policy will encompass this alignment between sustainability and competitiveness.
